Chief Minister Pinarayi Vijayan, who left for New Delhi to apprise the Centre of the state's concern on the issue, said the sentiments and anxiety of residents in the post-demonetisation scenario would be conveyed to Finance Minister Arun Jaitley.
He said the decision had dealt "inexplicable hardship" to common man and wanted the Centre to extend till December 30 the use of old notes.
"Since the construction sector has come to a standstill, there is no wages or jobs for them and their families are starving," Kerala Finance Minister T M Thomas Isaac said.
"An anarchy-like situation is prevailing in the country due to the withdrawal of Rs 500 and Rs 1,000 notes," he said while Opposition leader Ramesh Chennithala compared Modi with erstwhile Mughal ruler Muhammad bin Tughlaq.
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"Prime Minister Modi is the present day incarnation of emperor Tughlaq who pushed people to hardship through his wrong decisions," the senior Congress leader said.
He also alleged that "somebody" close to the Union government had received prior information about banning of the notes, and thus got the opportunity to take precautionary measures.
However, BJP state president Kummanam Rajasekharan, criticised Vijayan over the remark and demanded evidence from him in this regard.
Meanwhile, a 65-year-old woman was arrested and fake currency with a total face value of Rs 37,000 were allegedly seized from her when she came to deposit the high denomination notes at State Bank of India (SBI) branch in Malappuram district, police said today.
Shafiq, the woman's relative, said, "We got only Rs 4,000
standing in the queue for hours from a bank today. Hospital authorities are refusing to take the old notes saying only government hospitals are permitted to do so."
Migrant workers at Perumbavoor in Ernakulam district and in high range district of Idukki said they were finding it difficult to send money home.
Demonetisation has also dealt a huge blow on the tipplers in the state, as Kerala State Beverages Corporation Limited said that its revenue has taken a beating due to the move.